In Re Lester C. Blair, Bankrupt. Port O'Call Investment Co. v. Lester C. Blair, by and Through Richard A. Peterson, Trustee

This is an appeal by a creditor from an order of the District Court affirming an order of the bankruptcy judge which confirmed a compromise of disputed claims which arose during administration. Our jurisdiction is based on 11 U.S.C.A. Section 47 .

Blair filed an individual petition in bankruptcy on August 11, 1972. Richard Peterson, an attorney, was appointed and qualified as trustee and has continued to act throughout. He appeared as his own counsel in this court.

Basically, two disputes arose. One involved the valuation of Blair’s residence property, the amount of homestead exemption to be allowed, and the value of the interest of his non-bankrupt wife by reason of a joint tenancy deed. After determining that there were a number of construction liens against the residence and a substantial first deed of trust, the trustee allowed the homestead exemption and reported the excess value as “minimal.” The second dispute arose out of a sale of the residence by the bankrupt and wife to the Lowells for a sum substantially in excess of the initially reported value. The trustee immediately intervened in the escrow arrangement and the bankruptcy judge restrained the disbursement…